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Sell your car with CarBrain


Sell your car with CarBrain


Sell your car with CarBrain

Overtime without high production will hurt your shop's profit


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  • 1 year later...

Sell your car with CarBrain


Sell your car with CarBrain


Sell your car with CarBrain

Joe, you make terrific points. I find payroll and motivation to be my largest challenge outside of finding good, reliable talent. I have spoken with accountants, read article after article, and even spoke with the US Department of Labor about payroll, FLSA and overtime. Unless you're a dealer you cannot pay Flat Rate to your Technicians as their only means of income that is exempt from overtime. If you're an independent shop you can pay a guarantee but if your staff work more than 40 per week you MUST pay overtime. Any overtime also needs factored into any production bonus. It's a hard formula to create. I'm going to lower my hourly rate to my guys and pay them a higher per hour rate when they eclipse labor hours in a pay period. It's going to upset one of my longest working Techs because he's comfortable with his hourly and overtime income. The hustle is gone from his step, thinking, attitude. Wondering what flat labor hours per week we should be using as a threshold. 

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Getting your techs to maintain a consistency in work flow is always a battle and probably has much to do with  individual habits. My approach has been to create a good work environment with employee communication. ( Taking time to talk with employees about their interests / family.  Compensation: I have chosen to use a lower hourly rate with a higher commission based on book hours. Shop hours are M-F , 8-5pm (40 hours) This gives techs a full weekend / family time.  Shop worked many years 6 days per week and longer hours. In today's environment I found it better to totally end overtime.  

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  • 1 month later...

Been gone awhile so I assume your situation is no longer a concern. I put in place a higher per hour wage and commission structure that would allow for solid income IF they produce. I'm having an issue with my Store Manager, too. I feel my Techs are good when they're busy and my Shop Manager likes to socialize too much. I'm going to hire another Service Writer and likely fire my Manager. Get someone good in here that I can train and depend on when I need time off. I've had my Manager for three years and he's not increased performance or outcome one bit. Almost fired him this summer but gave him another chance. It's been six months and he has made insufficient improvements. It's hard because I care about the guy. 

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  • Have you checked out Joe's Latest Blog?

         2 comments
      My son is not in the automotive industry. He is in the commercial real estate business. However, the workplace problems are the same. Recently, his frustration with the heads of the company reached an all-time high. When I asked him why he doesn’t speak up and let the leadership know how he is feeling, he responded, “Anyone who has voiced concerns or issues has been viewed as weak and incapable of doing their job. I don’t want to be viewed like that.” This is an example of a toxic work environment.
      If you are a shop owner, you are a leader. And leaders must be approachable. That means that you are willing to hear the concerns of others and have them express themselves. It also means that while you may not agree with someone’s perspective on an issue, it is their perspective, and that viewpoint needs to be recognized and respected.
      Make it known that you want to hear the opinions of others. Literally, ask for input from others. And thank those that speak up. Now, I am not saying that you need to act on every concern or opinion. That would not be realistic. But just listening may be enough. And you never know, someone in your company may have an idea that you never thought about and even improve your business.
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